Proposed Regulations Breathe Life Into the Roth 401(k) Plan
- With Roth 403(b) Coming Next -

When first proposed in the House Republican's Contract with America in the mid-1990s, the Roth IRA was referred to as the "American Dream Savings Account." Eventually, it was ushered into the American retirement saving landscape by the Taxpayer Relief Act of 1997 ("1997 Act"). The concept is simple; an individual pays tax at the time contributions are made and, provided the funds are invested in the Roth IRA long enough, the investment and earnings are distributed tax free. However, until now only those with an adjusted gross income (AGI) below a certain level ($110,000 for single/head of household individuals and $160,000 for married couples) have been eligible to participate in a Roth IRA. That is all about to change.  Learn more.